Grouptyre Continues “Modernising”, Increases Distribution Points

Operating as a national distributor with the ability to focus on a local level, Grouptyre has the ability to develop solid business relationships with tyre retailers and grow its share of the market. Despite the challenging trading environment, Grouptyre’s 13 member companies say they are continuing to invest in the business, making improvements in distribution and upgrading IT systems to enhance the organisation’s overall product and service offerings, improving communications, sharing best practice and developing new business models.

Grouptyre currently operates 35 distribution points throughout the UK and Ireland – up from 29 in 2007 – following the opening of new facilities in several areas, including Carmarthen, St. Austell, Portsmouth and Southampton. Its strapline of “National strength, Local service” reveals the company’s approach, which it believes benefits the trade in many ways; since each member company serves a defined territory customers can take advantage of their local market knowledge, yet dealers also enjoy access to the kind of resources that are only available through a national organisation which is committed to working closely with tyre manufacturers and retailers for the long term benefit of the supply chain.

Grouptyre’s multiple same-day to on-demand delivery service has been further enhanced by investment in the 350-strong fleet. Vans leave Grouptyre distribution centres three times a day on average, with four times a day and even hourly deliveries offered in some areas, providing dealers with the specific patterns and sizes they need to satisfy customer demand promptly.
 
Grouptyre’s managing director Karl Naylor states that “Continuous investment by Grouptyre members underpins our commitment to modernising our business to reflect our position in the marketplace, and to supporting our customers through enhanced service levels and by extending the scope of our product/service offer.

“Consequently, we are well-equipped to weather the difficult trading conditions that the automotive industry has been battling this year and can move the business forward as a national brand in order to continue building our market share and to improve overall profitability.”

Making it easier for retailers to do business
Investment in IT systems and developments in key areas like pricing and marketing, says the company, have led to key operating efficiencies which in turn make it easier for retailers to do business with Grouptyre. Product information, stock availability and online ordering can be accessed at the touch of a button through the Grouplink ‘virtual warehouse’, while Grouptyre is also harnessing the latest technology to roll out a series of national incentives and special promotions.

During the past 18 months the company has been visibly proactive in its efforts to develop relationships and expand its customer base in all areas of the market, especially in the independent sector. Through national incentives like the Pirelli summer initiatives, the Maxxis Rewards programme and now the Red Letter Day promotion in conjunction with Federal – for which, like Maxxis, it is the exclusive UK distributor – Grouptyre has witnessed increased sales and rewarded retailers for their loyalty.

Promotions, believes Grouptyre, create goodwill and cement relationships, and following last summer’s prize draw promotion in conjunction with Pirelli, the decision was taken to run another initiative in which the top prize would be a VIP trip to the Spanish round of the World Rally Championships. Grouptyre sales director Paul Hollows says the original promotion was very well received and this time the initiative generated huge interest among independent tyre retailers, helping to cement relationships between Grouptyre, Pirelli and the trade.

Meanwhile, all retailers who sign up for the Maxxis Rewards programme and buy Maxxis car, van and 4×4 tyres (during the promotional period), earn Argos vouchers, Maxxis branded promotional clothing and are automatically entered into quarterly prize draws which gives them the chance to win a number of top prizes.

“Maxxis brand awareness is at a real high and I think it’s because the Maxxis Rewards programme works on several levels, with various opportunities to win major prizes, that it’s proving so popular,” says Hollows.

“We were so impressed by the trade’s reaction to these national promotions with Pirelli and Maxxis and the benefits they are bringing to all concerned that we have just launched a new two-stage incentive in association with Federal, whereby the winners will be able to treat themselves to a Red Letter Day experience.”

Grouptyre’s £50 million stockholding includes all the major brands, exclusive value brands like Maxxis and Federal, and niche products such as UHP and 4×4 tyres.